After The Conversion, It Is Expected That Viper's Current Limited Partners Would Own The Same Percentage Of The Corporation's Outstanding Shares As They Currently Own Of Viper's Outstanding Equity Interests
Portfolio Pulse from Happy Mohamed
Viper Energy Partners is planning a conversion that will allow its common stockholders to vote on all matters under the Delaware General Corporation Law. Post-conversion, Viper will be a 'controlled company' under NASDAQ rules as Diamondback Energy will own more than 50% of Viper's voting power. Viper's publicly traded common stock will continue to be traded on NASDAQ under the existing ticker symbol 'VNOM'.
July 31, 2023 | 8:50 pm
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NEUTRAL IMPACT
Diamondback Energy will own more than 50% of Viper Energy's voting power post Viper's conversion.
Diamondback Energy's ownership of more than 50% of Viper Energy's voting power post-conversion could potentially give it significant control over Viper's decisions. This could impact Diamondback's strategic decisions and potentially its stock price.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 75
NEUTRAL IMPACT
Viper Energy's conversion will allow its common stockholders more voting rights and will continue to trade under 'VNOM' on NASDAQ. Diamondback Energy will own more than 50% of Viper's voting power.
The conversion will not change the trading symbol or the ownership structure significantly, but it will increase the voting rights of the common stockholders. This could potentially attract more investors who prefer having voting rights. However, as Diamondback Energy will own more than 50% of the voting power, it will have significant control over the company's decisions.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100